The Canadian electric vehicle (EV) market is likely to stagnate this year due to the lack of support from provincial governments, according to Frost & Sullivan’s recent analysis, Strategic Analysis of the Canadian EV Market.
However, federal incentives are expected to give an impetus to the market. The country continues to prefer hybrid EVs over plug-in electric vehicles (PEVs). Despite this, the gap in sales is reducing and will continue to do so as charging infrastructure improves.
“As there exists a notable lack of non-cash incentives in current provincial EV-centric policies and schemes, provincial governments, apart from Quebec, Ontario and British Columbia need to introduce such incentives to push EV adoption. Additionally, charging station networks must be extended beyond the southern part of Canada and penetrate the entire country to address range anxiety,” says Ishaan Kolse, automotive and transportation research associate at Frost & Sullivan.
“As reflected by its 100.7% year-on-year growth, the EV market is demonstrating substantial demand. Further, this is the time to invest in the supply chain to lower cost of ownership of EVs (versus internal combustion engine vehicles) and increase the rate of adoption for potential customers,” Kolse adds.
If the Canadian government’s ambitious sales and emission targets are reflected in the policies it establishes, EV growth could skyrocket in the near future, unlocking growth opportunities for market participants.
Frost & Sullivan recommendations include:
- Original equipment manufacturers (OEMs) should introduce EV pick-ups before the market reaches saturation
- Charging station infrastructure must be rapidly extended across the country to address range anxiety
- Large OEMs and the government can leverage the availability and expertise of local EV makers
- Introduction of quality-of-life and utility-based incentives can push the demand for EVs in the country
For further information on this analysis, click here.